The Dutch chip machine maker ASML set up record figures in the fourth quarter of 2024 and thus managed to exceed the expectations of analysts. Despite earlier worries about the impact of the Chinese AI-Startup Deepseek, investors responded positively to the strong results.
The price of ASML increased by almost 11% in the morning trade, while other Dutch chip companies also benefited from optimism on the market.
ASML beats expectations with record turnover
ASML reported a quarterly turnover of € 9.3 billion, higher than the € 9.07 billion that analysts had predicted. The net profit amounted to € 2.69 billion, also above the expectation of € 2.64 billion. Even more striking was the increase in new orders, which rose to € 7.09 billion, an increase of 169% compared to the previous quarter.
On an annual basis, ASML recorded a record turnover of € 28.3 billion, with a net profit of € 9.3 billion. For the first quarter of 2025, the company expects a turnover between € 7.5 and € 8 billion.
ASML CEO Christophe Fouquet stated that the explosive growth of artificial intelligence is one of the most important driving forces behind the rising demand for advanced chip production equipment.
Deepseek and worries about AI-market
Earlier this week, ASML and other chip companies fell sharply due to the launch of Deepseek R1, a Chinese AI-Chatbot that is said to compete with OpenAI’s Chatgpt, but at considerably lower costs. This caused speculation that the demand for advanced AI chips could decrease.
Yet ASML does not see these developments as a threat. In an interview with CNBC, CEO Fouquet emphasized that a lower cost price for AI in the long term can actually lead to a broader application of artificial intelligence and therefore a higher demand for chips.
“We see no indication that the demand for AI-based chips is decreasing. On the contrary, cheaper AI applications mean more options and therefore ultimately more demand for chips, “says Fouquet.
Strong exhibition reaction and sector -wide recovery
The positive figures from ASML led to a restoration of the entire Dutch chip sector. Besi rose by almost 7% and ASM International recorded a profit of 8% on the Amsterdam stock exchange. This was a compensation for the losses that were booked earlier in the week after the Deepseek launch.
According to analysts, the strong performance of ASML confirms that the company remains well positioned within the semiconductor industry, despite geopolitical uncertainties and changes in the AI market. Michael Field, head strategist at Morningstar, called ASML the best AI-related investment in Europe and estimates the actual value of the share at € 850, well above the current rate.
With an order portfolio of € 36 billion and a robust outlook for 2025, ASML seems to be well positioned to continue to serve the growing demand for advanced chip technology.
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Source: https://newsbit.nl/asml-boekt-recordomzet-en-ziet-beurswaarde-fors-stijgen-na-sterke-kwartaalcijfers/
